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Essay text:
Through this exploitation of the money supply, government influences other factors such as GDP, inflation and the unemployment and interest rates.
Gross Domestic Product (GDP) is the total market value of all final goods and services produced in a given year. Final goods are goods and services that are purchased for final use by the consumer, not for resale or further processing or manufacturing. (McConnell-Brue, p. 112-113) Higher levels of money in the economy lead to a higher GDP.
Unemployment is defined by the following three groups: 1) people who are institutionalized and are not considered a member of the workforce, 2) people who are willing to work but are unemployed and are not seeking work and 3) people who are willing to work and those actively looking for work...
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